I have decided in my solo K I'm going to choose an index fund that tracks the S&P. I am choosing between Vanguard index 500 (VFIAX) which has no transaction fee and expense ratio 0.04% and Fidelity 500 (FXAIX) which has transaction fee but expense ratio 0.01%. Then again, I look at Schwab (SWPPX) and there's no transaction fee and 0.02% expense ratio. How do I choose between these. The investments look very similar but the cost is different. What am I missing??
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Originally posted by NeuroCM View PostI have Vanguard for my Roth, Fidelity for my 401k, and opened a solo K with e trade recently. Trying something new in this smaller account so figured Id do at least a certain proportion of S&P
but to answer your original question: you choose the cheapest one. they are literally all the same.
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In 2020, you should not be paying a transaction fee for an S&P 500 fund. You did not indicate where your assets are held, but you can likely buy it for no fee there.
For perspective, when I first bought the Vanguard S&P 500 fund, the expense ratio was 0.4%, and it was the cheapest mutual fund available. Today, they are practically free. Do not overthink it.
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They're all the same. I keep total stock market index funds in my retirement accounts and s&p 500 fund in taxable for purposes of TLH and avoiding a wash sale rule. The s&p500 and total market funds have such high correlation that I consider them identical when looking at my portfolio.Last edited by jhwkr542; 12-31-2020, 01:57 PM.
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Originally posted by Peds View Post
google.
total US 20.4% YTD
s&p500 17.6% YTD
thats 16% difference.
S&P 500 PR (SPX) Quote | Morningstar
S&P 500 Index - CNNMoney.com
Vanguard 500 Index Admiral (VFIAX) Performance | Morningstar
Although most would still be happy with 16% more.
Thanks!
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Originally posted by jhwkr542 View PostThey're all the same. I keep total stock market index funds in my retirement accounts and s&p 500 fund in taxable for purposes of TLH and avoiding a wash sale rule. The s&p500 and total market funds have such high correlation that I don't consider them identical when looking at my portfolio.
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